Closing Entries (Net Income) Use the following partial listing of T accounts to complete this exercise. Cash 101 Income Summary 313 Supplies Expense 524 Bal. 500 Bal. 500 Accounts Receivable 122 Golf Instruction Fees 401 Insurance Expense 535 Bal. 1,500 Bal. 4,000 Bal. 100 Wages Payable 219 Wages Expense 511 Postage Expense 536 Bal. 400 Bal. 800 Bal. 50 Chris Williams, Capital 311 Advertising Expense 512 Gas and Oil Expense 538 Bal. 9,000 Bal. 200 Bal. 150 Chris Williams, Drawing 312 Travel Expense 515 Miscellaneous Expense 549 Bal. 1,000 Bal. 600 Bal. 80 Required: 1. Prepare closing entries in general journal form dated April 30, 20--. Then post the closing entries to the T accounts. Page: 1 DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20-- Apr. 30 fill in the blank 0838ba0c9fdc05c_2 fill in the blank 0838ba0c9fdc05c_3 fill in the blank 0838ba0c9fdc05c_4 1 2 fill in the blank 0838ba0c9fdc05c_6 fill in the blank 0838ba0c9fdc05c_7 fill in the blank 0838ba0c9fdc05c_8 2 3 3 4 Apr. 30 fill in the blank 0838ba0c9fdc05c_10 fill in the blank 0838ba0c9fdc05c_11 fill in the blank 0838ba0c9fdc05c_12 4 5 fill in the blank 0838ba0c9fdc05c_14 fill in the blank 0838ba0c9fdc05c_15 fill in the blank 0838ba0c9fdc05c_16 5 6 fill in the blank 0838ba0c9fdc05c_18 fill in the blank 0838ba0c9fdc05c_19 fill in the blank 0838ba0c9fdc05c_20 6 7 fill in the blank 0838ba0c9fdc05c_22 fill in the blank 0838ba0c9fdc05c_23 fill in the blank 0838ba0c9fdc05c_24 7 8 fill in the blank 0838ba0c9fdc05c_26 fill in the blank 0838ba0c9fdc05c_27 fill in the blank 0838ba0c9fdc05c_28 8 9 fill in the blank 0838ba0c9fdc05c_30 fill in the blank 0838ba0c9fdc05c_31 fill in the blank 0838ba0c9fdc05c_32 9 10 fill in the blank 0838ba0c9fdc05c_34 fill in the blank 0838ba0c9fdc05c_35 fill in the blank 0838ba0c9fdc05c_36 10 11 fill in the blank 0838ba0c9fdc05c_38 fill in the blank 0838ba0c9fdc05c_39 fill in the blank 0838ba0c9fdc05c_40 11 12 fill in the blank 0838ba0c9fdc05c_42 fill in the blank 0838ba0c9fdc05c_43 fill in the blank 0838ba0c9fdc05c_44 12 13 13 14 Apr. 30 fill in the blank 0838ba0c9fdc05c_46 fill in the blank 0838ba0c9fdc05c_47 fill in the blank 0838ba0c9fdc05c_48 14 15 fill in the blank 0838ba0c9fdc05c_50 fill in the blank 0838ba0c9fdc05c_51 fill in the blank 0838ba0c9fdc05c_52 15 16 16 17 Apr. 30 fill in the blank 0838ba0c9fdc05c_54 fill in the blank 0838ba0c9fdc05c_55 fill in the blank 0838ba0c9fdc05c_56 17 18 fill in the blank 0838ba0c9fdc05c_58 fill in the blank 0838ba0c9fdc05c_59 fill in the blank 0838ba0c9fdc05c_60 18 19 19
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Closing Entries (Net Income)
Use the following partial listing of T accounts to complete this exercise.
Cash |
101 |
Income Summary |
313 |
Supplies Expense |
524 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bal. | 500 | Bal. | 500 |
Receivable |
122 |
Golf Instruction Fees |
401 |
Insurance Expense |
535 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bal. | 1,500 | Bal. | 4,000 | Bal. | 100 |
| Wages Payable |
219 |
Wages Expense |
511 |
Postage Expense |
536 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bal. | 400 | Bal. | 800 | Bal. | 50 |
| Chris Williams, Capital |
311 |
Advertising Expense |
512 |
Gas and Oil Expense |
538 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bal. | 9,000 | Bal. | 200 | Bal. | 150 |
| Chris Williams, Drawing |
312 |
Travel Expense |
515 |
Miscellaneous Expense |
549 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bal. | 1,000 | Bal. | 600 | Bal. | 80 |
Required:
1. Prepare closing entries in general journal form dated April 30, 20--. Then
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Apr. 30 |
fill in the blank 0838ba0c9fdc05c_2 | fill in the blank 0838ba0c9fdc05c_3 | fill in the blank 0838ba0c9fdc05c_4 | 1 | ||
| 2 | fill in the blank 0838ba0c9fdc05c_6 | fill in the blank 0838ba0c9fdc05c_7 | fill in the blank 0838ba0c9fdc05c_8 | 2 | |||
| 3 | 3 | ||||||
| 4 | Apr. 30 | fill in the blank 0838ba0c9fdc05c_10 | fill in the blank 0838ba0c9fdc05c_11 | fill in the blank 0838ba0c9fdc05c_12 | 4 | ||
| 5 | fill in the blank 0838ba0c9fdc05c_14 | fill in the blank 0838ba0c9fdc05c_15 | fill in the blank 0838ba0c9fdc05c_16 | 5 | |||
| 6 | fill in the blank 0838ba0c9fdc05c_18 | fill in the blank 0838ba0c9fdc05c_19 | fill in the blank 0838ba0c9fdc05c_20 | 6 | |||
| 7 | fill in the blank 0838ba0c9fdc05c_22 | fill in the blank 0838ba0c9fdc05c_23 | fill in the blank 0838ba0c9fdc05c_24 | 7 | |||
| 8 | fill in the blank 0838ba0c9fdc05c_26 | fill in the blank 0838ba0c9fdc05c_27 | fill in the blank 0838ba0c9fdc05c_28 | 8 | |||
| 9 | fill in the blank 0838ba0c9fdc05c_30 | fill in the blank 0838ba0c9fdc05c_31 | fill in the blank 0838ba0c9fdc05c_32 | 9 | |||
| 10 | fill in the blank 0838ba0c9fdc05c_34 | fill in the blank 0838ba0c9fdc05c_35 | fill in the blank 0838ba0c9fdc05c_36 | 10 | |||
| 11 | fill in the blank 0838ba0c9fdc05c_38 | fill in the blank 0838ba0c9fdc05c_39 | fill in the blank 0838ba0c9fdc05c_40 | 11 | |||
| 12 | fill in the blank 0838ba0c9fdc05c_42 | fill in the blank 0838ba0c9fdc05c_43 | fill in the blank 0838ba0c9fdc05c_44 | 12 | |||
| 13 | 13 | ||||||
| 14 | Apr. 30 | fill in the blank 0838ba0c9fdc05c_46 | fill in the blank 0838ba0c9fdc05c_47 | fill in the blank 0838ba0c9fdc05c_48 | 14 | ||
| 15 | fill in the blank 0838ba0c9fdc05c_50 | fill in the blank 0838ba0c9fdc05c_51 | fill in the blank 0838ba0c9fdc05c_52 | 15 | |||
| 16 | 16 | ||||||
| 17 | Apr. 30 | fill in the blank 0838ba0c9fdc05c_54 | fill in the blank 0838ba0c9fdc05c_55 | fill in the blank 0838ba0c9fdc05c_56 | 17 | ||
| 18 | fill in the blank 0838ba0c9fdc05c_58 | fill in the blank 0838ba0c9fdc05c_59 | fill in the blank 0838ba0c9fdc05c_60 | 18 | |||
| 19 | 19 |
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